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InterviewSolution
| 1. |
Why scarcity is universal phenomenon in economics? |
| Answer» Limitations of supply in relation to demand for a commodity<br>Scarcity refers to a basic economic problem—the gap between limited resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible. Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity. Scarcity is also referred to as "paucity." | |